Loan from mum and dad

duarab

Hi, buying a house but due to some unforseen mortgage porting problems and ltv issues i am getting some money from my mum and dad, they are going to lend me the money interest free for two years and im going to pay them back when i remortgage. They want this in writting incase anything happens to them, how do i go about writting something up?

CLAPTON

what do you want to say?

Tixy

It depends how formal they want it writing up. You could employ a solicitor to write out an agreement or you could write a simple agreement yourselves stating clearly the intentions of all, how much you will repay, when etc, whether interest will be charged, what you will do if you cannot get a remortgage in 2 years etc (say if your house did not increase in value or you were out of work and unable to get a loan etc). The get all 3 parties to sign the agreement and get it witnessed by someone else (preferably an unrelated 'non-interest party') and make sure you all keep copies.
If you do a google search you may get something you can base your agreement on.

Tixy

http://forums.moneysavingexpert.com/showthread.html?t=76953&page=10 Post 190 in this thread has a suggested template - no idea how it would stand up legally but might be a starting point for you.

Mikek_3

Dont borrow from family it will turn sour when you do stuff they dont approve of,Like buy something nice or go on holidays.

"O isnt it well for her/him off on holidays with our money while we are stuck here"

This will happen til loan is paid off.

HappyMJ

Mikek wrote: »

Dont borrow from family it will turn sour when you do stuff they dont approve of,Like buy something nice or go on holidays.

"O isnt it well for her/him off on holidays with our money while we are stuck here"

This will happen til loan is paid off.

Depends how much...if only £10,000 on a fully owned property so that son/daughter can get cheaper rate on mortgage then I wouldn't mind what they did but I'd charge them the same in interest as I would be charged.